{"id":26767,"date":"2017-10-12T18:23:21","date_gmt":"2017-10-12T23:23:21","guid":{"rendered":"http:\/\/olduvai.ca\/?p=26767"},"modified":"2017-10-12T18:23:21","modified_gmt":"2017-10-12T23:23:21","slug":"only-china-can-restore-stability-in-the-global-economy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=26767","title":{"rendered":"Only China Can Restore Stability in The Global Economy"},"content":{"rendered":"
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Only China Can Restore Stability in The Global Economy<\/a><\/span><\/h3>\n

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Fan Ho <\/span>East meets west <\/b>1963<\/span><\/h1>\n<\/div>\n<\/header>\n
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For those of you who don\u2019t know Andy Xie, he\u2019s an MIT-educated former IMF economist and was once Morgan Stanley\u2019s chief Asia-Pacific economist. Xie is known for a bearish view of China, and not Beijing\u2019s favorite person. He\u2019s now an \u2018independent\u2019 economist based in Shanghai. He gained respect for multiple bubble predictions, including the 1997 Asian crisis and the 2008 US subprime crisis.<\/p>\n

Andy Xie posted an article in the South China Morning Post a few days ago that warrants attention. Quite a lot of it, actually. In it, he mentions some pretty stunning numbers and predictions. Perhaps most significant are:<\/p>\n

\u201conly China can restore stability in the global economy\u201d<\/i><\/b><\/p>\n

and<\/p>\n

\u201cThe festering political tension [in the West] could boil over. Radical politicians aiming for class struggle may rise to the top. The US midterm elections in 2018 and presidential election in 2020 are the events that could upend the applecart.\u201d<\/i><\/b><\/p>\n

Here are some highlights.<\/p>\n

The bubble economy is set to burst, and US elections may well be the trigger <\/a><\/p>\n

Central banks continue to focus on consumption inflation, not asset inflation, in their decisions. Their attitude has supported one bubble after another. These bubbles have led to rising inequality and made mass consumer inflation less likely. Since the 2008 financial crisis, asset inflation has fully recovered, and then some. <\/i><\/p>\n

<\/i>The US household net worth is 34% above the peak in 2007, versus 30% for nominal GDP. China\u2019s property value may have surpassed the total in the rest of the world combined.<\/b> The world is stuck in a vicious cycle of asset bubbles, low consumer inflation, stagnant productivity and low wage growth.<\/i><\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Only China Can Restore Stability in The Global Economy Fan Ho East meets west 1963 For those of you who don\u2019t know Andy Xie, he\u2019s an MIT-educated former IMF economist and was once Morgan Stanley\u2019s chief Asia-Pacific economist. Xie is known for a bearish view of China, and not Beijing\u2019s favorite person. He\u2019s now an […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[13935,1806,130,16459,195,16460,481,13924,668,5177,1939],"class_list":["post-26767","post","type-post","status-publish","format-standard","hentry","category-economics","tag-andy-xie","tag-bubble","tag-china","tag-class-struggle","tag-debt","tag-greater-fool","tag-leverage","tag-raul-ilargi-meijer","tag-real-estate","tag-the-automatic-earth","tag-zirp"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26767","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26767"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26767\/revisions"}],"predecessor-version":[{"id":26768,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26767\/revisions\/26768"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}